SEBI Circular on Permanent Account Number (PAN)

Securities and Exchange Board of India (SEBI) vide their circulars MRD/DoP/Cir-05/2007 dated April 27, 2007 and MRD/DoP/Cir-08/2007 dated June 25, 2007, has made Permanent Account Number (PAN), the sole identification number for all participants transacting in the securities market, irrespective of the amount of transaction, effective July 2, 2007. Hence, all investors would compulsorily have to provide their PAN details along with the original PAN card for verification.

The requirement of PAN applies to -

• All unit holders in the folio, including Guardian(s)
• Non Resident Indian (NRI) investors as well
• Power of Attorney (PoA) holder,
• Lien Holder

Yes, PAN needs to be submitted for all investments viz. New Purchases, Additional Purchases, Switches.New SIP registrations and in the event of Transmission of units or upon Minor becoming Major. The investor needs to be KYC compliant as well.

All existing and potential investors are permitted to invest in units of Mutual Fund only if he / she possesses a valid PAN card. Submission of PAN is mandatory for all investments as mentioned in point 3 above.

You may apply for a PAN at any of the agencies appointed by the Income Tax Department for accepting PAN applications.
The website links for applying for PAN are as under -

• tin.tin.nsdl.com/pan/index.html

Investors who do not have their PAN verified are requested to submit a copy of the PAN card along with the original PAN card for verification at our Investor Service Centre / CAMS Investor Service Centers. The original will be returned immediately across the counter after verification.

No. This is a one-time process for investors who do not have their PAN verified in our records yet. Once the PAN is verified, it shall be useful for all future transactions.  

 

An investor must submit the PAN details along with all investments. However, if an investor has an existing folio with us, he/ she must get his/her PAN verified at the earliest, even if s/he wishes to transact at a later point of time.

PAN has been made compulsory for all investors irrespective of the tax status or the amount of investment.

Yes. Effective 1st January 2011 PAN has been made mandatory for any investment in Mutual Funds (as mentioned in point 3 above) irrespective of the investment amount.

Yes, PAN has been made compulsory for investing in units of Mutual Funds and also to strengthen the Know Your Client (KYC) norms.

Erstwhile MIN was a requirement to meet the obligations of the Prevention of Money Laundering Act, 2002 (PMLA). However, PAN is a requirement under SEBI regulations and also under Income Tax Act, 1961. Hence, you are required to get your PAN details verified.
KYC norms however, remain unchanged and PAN is now the sole identification number.  

No, you would be required to provide us with the original for us to verify the same. Alternatively, you may send us a true copy of your PAN card attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank (Name, Designation and Seal should be affixed on the copy) or by an official from the local office of the Indian Embassy / Consulate. Please refer new KRA Norms

You may apply for a PAN online with the Income Tax website (please refer to point number 5 above for details).  

Yes. Both application form and copy of PAN, duly verified by us, is a must for processing of any application. Applications without PAN details and a copy of the PAN card will be deemed as incomplete.

In such a case, your Agent / Distributor must verify your PAN with the original PAN card and then submit to us. PAN verified by an Agent / Distributor shall be accepted provided the Agent / Distributor affixes his ARN seal along with his signature and name on the PAN card copy with the words "Verified with the original PAN Card" The Agent / Distributor should be the same as the one on the investment application form.

You may submit PAN attested by the Notary Public, Gazetted Officer, Manager of a Scheduled Commercial Bank or by the Indian Embassy / Consulate. Name, Designation and Seal along with the signature should be affixed on the copy with the words "Verified with the original PAN Card"  

All applicants / joint holders of Mutual Fund units need to have a valid PAN.  

For the cases wherein the PAN verification fails, the investors would be contacted by us. If we fail to get the same regularized, the investment amount is liable to get redeemed / refunded, and the folio is liable to be locked for further transactions.  

No. You must intimate to us in writing, signed by all Unitholder(s) as per the mode of holding, mentioning your folio number(s) on a separate sheet in order to enable us to update your record. You must ensure that all unit holders (i.e., first and all joint holders) have the PAN verified too.
However, we strongly recommend, that you consolidate all folios (certain conditions apply) for your own convenience.  

Since this is a new requirement, please ensure that you give a copy of PAN card duly verified. If you have done so and have an acknowledgement from us, you need not take any action.
Mutual Funds are required to counter verify the details from the Income Tax website or the CAMS website. Your PAN card copy, duly verified will help us in case of any discrepancy.  

Yes, you must get your PAN details verified with us immediately, in order to be able to carry out transactions.  

Yes. We recommend that you visit the website of our Registrar & Transfer Agent (RTA), Computer Age Management Services Pvt. Limited (CAMS)
You may enter your PAN on the site, wherein, the link is provided in order to enable you to ascertain the status.
If your PAN is verified, please send us a list of all your folios quoting the verification status on this website. This is applicable for all unit holders of the folio.

No. As per SEBI circulars, we are required to verify the original PAN card.